Image Souce: Krish Capital Pty Ltd

Index Update

On Tuesday, the Dow dropped 0.35%, the S&P 500 fell 0.3%, and the Nasdaq declined 0.25%, marking consecutive down days for the S&P 500 and Nasdaq, and the fourth negative session for the Dow. Eight of the eleven S&P sectors ended lower, with real estate, technology, and materials leading declines. Oracle shares dropped 6.7% after disappointing revenue, citing cloud sector competition, while Alphabet rose 5.6% after announcing breakthroughs in quantum computing.

Market Movers

On Tuesday, the top gainers were  Chimerix, Inc. (+152.02%), followed by     Cumberland Pharmaceuticals Inc. (+133.87%). On the contrary, Huize Holding Limited (-16.83%) and  Carbon Revolution Public Limited Company (-12.04%) declined the most the same day.

Commodities Update

WTI crude oil futures rose to around $69 per barrel, marking a third consecutive session of gains, driven by improved demand outlook. China’s plans for loose monetary policy next year to stimulate its economy and a 14% year-on-year increase in crude imports in November supported this outlook. However, API data showed a 0.5-million-barrel increase in US crude stocks, contrary to expectations of a draw. Investors are awaiting OPEC’s report and key US inflation data for further market direction.

Macro Update

US mortgage applications rose by 5.4% in the week ending December 6th, following a 2.8% increase in the previous period, marking the fifth consecutive week of growth. This rise was driven by a 30% surge in refinancing loans, while applications for new home purchases fell by 4%. The growth was supported by a slight drop in mortgage rates, fueled by expectations of slower inflation and potential Fed rate cuts.

Futures Update

US stock futures held steady on Wednesday as investors awaited key US inflation data, which could influence Federal Reserve policy. Markets are currently pricing in an 86% chance of a 25-basis-point rate cut by the Fed this month, up from 73% a week ago.

On Wednesday, December 11th, Bitcoin traded at 98,220 USD, rising by 1,491 USD or 1.54% from the previous session. Over the last four weeks, Bitcoin gained 11.69%, and its price has increased by 139.06% over the past 12 months.

Following an inability to maintain an early upward momentum, stocks experienced a moderate decline during Tuesday’s trading session. The major indices extended the losses experienced on Monday, with both the Nasdaq and the S&P 500 retreating further from the record closing highs achieved last Friday. In the latter part of the trading day, the major averages reached new session lows. The Nasdaq dropped by 49.45 points, or 0.3 percent, to end at 19,687.24; and the S&P 500 decreased by 17.94 points, also a 0.3 percent decline, finishing at 6,034.90. From a technical perspective, the S&P 500 is currently moving within a rising channel, suggesting the potential for additional gains. The 14-period Relative Strength Index (RSI) remains in positive territory. Key levels to monitor include resistance at 6,100 and support at 5,944.

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